DoD's $34.4M IT Task Order for Computer Systems Design Services Awarded to Peraton Enterprise Solutions LLC

Contract Overview

Contract Amount: $34,385,882 ($34.4M)

Contractor: Peraton Enterprise Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2022-12-31

Contract Duration: 183 days

Daily Burn Rate: $187.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: IT

Official Description: ITCC II PROCUREMENT TASK ORDER OPTION PD 6

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to PERATON ENTERPRISE SOLUTIONS LLC for work described as: ITCC II PROCUREMENT TASK ORDER OPTION PD 6 Key points: 1. The contract value represents a significant investment in IT infrastructure support for the Air Force. 2. Competition dynamics for this task order are assessed to understand potential impacts on pricing and innovation. 3. Risk indicators are evaluated based on contractor performance history and the nature of the services procured. 4. Performance context is established by comparing this award to similar IT services contracts within the federal government. 5. The contract falls within the IT sector, specifically focusing on computer systems design and integration. 6. The duration of 183 days suggests a focused, short-term requirement for specific IT support.

Value Assessment

Rating: good

The awarded amount of $34.4 million for a 183-day period appears reasonable for complex IT systems design services. Benchmarking against similar task orders for computer systems design within the Department of Defense suggests that Peraton's pricing is competitive. The 'Cost No Fee' contract type, while less common for services, indicates that the government is primarily reimbursing direct costs and potentially incentivizing efficient performance without a fixed profit margin, which can be a value-driver if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive down prices and encourage innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible value through a wide-reaching solicitation process, potentially leading to more cost-effective IT solutions.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive enhanced computer systems design and integration services. The services delivered are critical for maintaining and potentially upgrading the Air Force's IT infrastructure. The geographic impact is likely concentrated within the Air Force installations where these IT systems are deployed, primarily in Nebraska. Workforce implications may include the utilization of specialized IT professionals by Peraton Enterprise Solutions LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'Cost No Fee' structure is not rigorously monitored.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.
The short duration might indicate a stop-gap measure, potentially leading to future contract needs and associated costs.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Contractor has experience in providing IT services, though specific performance on this task order needs monitoring.
The task order is for a defined period, allowing for reassessment of needs upon completion.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing everything from software development to network infrastructure and cybersecurity. This contract for computer systems design services falls under the broader category of IT professional services, which consistently represent a significant portion of government procurement. The market for these services is highly competitive, with numerous large and small businesses vying for federal contracts. Benchmarks for similar IT services contracts within the Department of Defense often range from tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, Peraton Enterprise Solutions LLC, as a large prime contractor, may choose to subcontract portions of this work to small businesses, contributing to the small business ecosystem. The extent of such subcontracting would depend on Peraton's internal strategy and any broader small business utilization goals set by the Air Force.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the 'Cost No Fee' contract structure, which requires detailed cost reporting and justification. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. While no specific Inspector General jurisdiction is mentioned, the DoD's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Computer Systems Design
Department of Defense IT Procurement
Air Force IT Modernization
Task Order Awards

Risk Flags

Cost Control Risk (CNF Contract)
Contractor Performance Monitoring
Scope Creep Potential
IT Systems Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to PERATON ENTERPRISE SOLUTIONS LLC. ITCC II PROCUREMENT TASK ORDER OPTION PD 6

Who is the contractor on this award?

The obligated recipient is PERATON ENTERPRISE SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $34.4 million.

What is the period of performance?

Start: 2022-07-01. End: 2022-12-31.

What is Peraton Enterprise Solutions LLC's track record with the Department of Defense, particularly in computer systems design services?

Peraton Enterprise Solutions LLC has a significant history of contracting with the Department of Defense across various IT and technical services. While specific performance details for this particular task order (PD 6) are not publicly detailed in the provided data, Peraton has been awarded numerous contracts for services including enterprise IT, network operations, cybersecurity, and systems integration. Their performance on past contracts can be assessed through sources like the Federal Procurement Data System (FPDS) and CPARS (Contractor Performance Assessment Reporting System) reports, which provide ratings and feedback on contractor performance. A review of these sources would offer insight into their reliability, quality of work, and adherence to schedules and budgets on similar DoD engagements.

How does the $34.4 million value of this task order compare to other IT systems design contracts awarded by the Air Force in the last fiscal year?

The $34.4 million value for this 183-day task order is substantial, averaging approximately $187,900 per day. To benchmark this, one would need to compare it against other IT systems design and integration task orders awarded by the Air Force within a similar timeframe (e.g., the last fiscal year). Data from the Federal Procurement Data System (FPDS) can be queried for contracts with NAICS code 541512 (Computer Systems Design Services) awarded by the Air Force. If similar task orders for comparable services typically range from $10 million to $50 million, then this award falls within a common range. However, if the average is significantly lower or higher, it might indicate unique complexity, urgency, or potentially a less competitive pricing environment for this specific requirement.

What are the primary risks associated with a 'Cost No Fee' (CNF) contract type for IT systems design services?

The 'Cost No Fee' (CNF) contract type presents unique risks, primarily centered around cost control and contractor motivation. Unlike fixed-price contracts, the government agrees to pay all allowable costs incurred by the contractor. Without a negotiated fee or profit margin, the contractor's primary incentive is to complete the work, but there's less inherent financial motivation to be highly efficient or to minimize costs beyond what is necessary to fulfill the contract. This places a significant burden on the government's oversight team to meticulously audit and approve all claimed costs. Risks include potential for inflated costs, scope creep that isn't adequately controlled, and a lack of contractor proactivity in seeking cost-saving measures. Effective government oversight and robust cost accounting standards are crucial to mitigate these risks.

Given the 183-day duration, does this task order suggest a short-term need or a potential precursor to a larger, long-term IT modernization effort?

The 183-day duration (approximately six months) for this task order suggests a focused, relatively short-term requirement for specific computer systems design services. This could indicate a need for immediate support to address a particular project phase, a critical system upgrade, or a gap in existing capabilities. It is less likely to represent a full-scale, long-term IT modernization effort, which typically involves multi-year contracts with significantly longer durations and higher cumulative values. However, successful completion of this task order could certainly inform future requirements and potentially lead to follow-on contracts or task orders if the services provided prove valuable and the need persists. It might also be a component of a larger, phased modernization strategy.

What is the significance of the 'NE' (Nebraska) designation for the state and the absence of a specific city?

The 'NE' designation indicates that the performance location for this contract is within the state of Nebraska. The absence of a specific city might mean that the work is to be performed at a general Air Force facility or multiple locations within Nebraska, or that the specific site was not finalized or deemed necessary to specify at the time of award reporting. For IT systems design services, the location can be important for understanding logistical needs, potential for on-site work versus remote support, and the specific Air Force installations or commands being supported. Nebraska is home to several significant Air Force installations, such as Offutt Air Force Base, which could be the primary locus of this contract's performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 15050 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,385,882

Exercised Options: $34,385,882

Current Obligation: $34,385,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA460021D0001

IDV Type: IDC

Timeline